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What is the resulting balance of $3,500 at 4% compounded annually for 8 years?

User Rafael T
by
3.4k points

1 Answer

9 votes

Answer:

$4,789.99

Explanation:

Using the formula for calculating the compound interest

A = P(1+r)^t

P is the principal = $3500

r is the rate = 4% = 0.04

T is the time = 8 years

Substitute

A = 3500(1+0.04)^8

A = 3500(1.04)^8

A = 3500(1.3686)

A = 4,789.99

Hence the resulting balance is $4,789.99

User Vishavjeet Singh
by
4.1k points